One in Five Americans Started Using a New Bank Amid Pandemic, FIS PACE Study Finds

Rhea-AI Summary

The COVID-19 pandemic has led to a notable shift in U.S. consumer banking habits, with a FIS survey revealing that 20% of respondents switched to a new bank in the past year. A significant 33% sought better benefits, such as higher savings yields. Major banks are preferred by 37% of new customers, while credit unions attract 18% and direct banks 17%. Demographic trends indicate that Gen Z is primarily motivated by benefits, while Senior Millennials are influenced by life changes. FIS emphasizes the need for banks to enhance digital services to meet evolving consumer demands.

Positive

• 20% of respondents switched to new banking providers, indicating market expansion opportunities.
• 33% of new bank users are seeking better benefits, showcasing demand for enhanced banking services.
• FIS's investment in digital-first solutions positions the company favorably in an evolving market.

Negative

• None.

The COVID-19 pandemic has made consumers in the U.S. more adventurous in trying out new banks, according to a new study from financial technology leader FIS^® (NYSE: FIS).

FIS surveyed more than 1,000 Americans about their banking and financial habits in the past 12 months since the pandemic began. The results showed that 1 in 5 people started using a new banking provider in the past 12 months. Thirty-three percent of those who joined a new bank were looking for better benefits such as higher savings yields and rewards. while seven percent of consumers said they did so to access COVID-19 relief according to the survey.

Big Banks, Credit Unions and Direct Banks Are Winning Consumers

• Thirty-seven percent of those surveyed opted for a large national or global bank when starting a new banking relationship in the past year.
• Credit unions were the second-most popular choice for consumers with 18 percent opening accounts at these institutions
• Direct banks are a fast-emerging competitor in the banking space with 17 percent of respondents saying they opted for this kind of institution to do their banking.

Demographic Disparities amid COVID-19

• Nearly half of Gen Zers responded that they sought new banking relationships over the past year for better benefits and rewards.
• More than half of Senior Millennials said they opened new banking accounts because of financial needs due to entering a new chapter in life, such as starting a new job, getting married, or moving to a new house.
• Ten percent of both Senior Millennials and Gen Xers started using a new banking provider to participate in COVID-19 financial assistance programs

“COVID-19 has been a huge catalyst in driving new consumer behaviors, from how they shop to how they bank,” said Rob Lee, Head of Digital and Banking at FIS. “All of this change spells opportunity for banks and credit unions to advance their digital offerings and loyalty programs to meet these changing needs and capture new customers. To meet rising consumer demand for new banking experiences, FIS has been heavily invested in digital-first solutions that bring these new services and functionality to banks while also making integration easier than ever.”

​​About the Data

Figures quoted are from the survey results of 1,015 consumers across the United States between the dates February 5-8, 2021 through the Ipsos KnowledgePanel Omnibus study.

About FIS

FIS is a leading provider of technology solutions for merchants, banks and capital markets firms globally. Our employees are dedicated to advancing the way the world pays, banks and invests by applying our scale, deep expertise and data-driven insights. We help our clients use technology in innovative ways to solve business-critical challenges and deliver superior experiences for their customers. Headquartered in Jacksonville, Florida, FIS is a Fortune 500® company and is a member of Standard & Poor’s 500® Index. To learn more, visit www.fisglobal.com. Follow FIS on Facebook, LinkedIn and Twitter (@FISGlobal).

View source version on businesswire.com: https://www.businesswire.com/news/home/20210323005076/en/

FAQ

What percentage of consumers switched banks according to the FIS survey?

According to the FIS survey, 20% of consumers switched to a new banking provider in the past year.

What were the main reasons consumers changed their banking providers?

The primary reasons included seeking better benefits, such as higher savings yields, with 33% citing this motivation.

Which type of banking institution was most popular among new consumers in the survey?

In the survey, 37% of respondents opted for a large national or global bank when choosing a new banking provider.

What demographic showed a strong preference for new banking relationships?

Nearly half of Gen Z respondents indicated they sought new banking relationships primarily for better benefits and rewards.

How did COVID-19 impact consumer banking choices according to FIS?

COVID-19 significantly influenced consumer behaviors, driving many to seek new banking experiences and relationships.